Vietnam: Reporting of the use of foreign loans and the repayment status thereof

According to the Regulations issued together with Circular No. 153/2014/TT-BTC of the Ministry of Finance of Vietnam, reporting of the use of foreign loans and the repayment status of these loans, including periodic reports and ad hoc reports, is specified as follows:

Periodic report:

- Every six (06) months and annually, the Board of Members, Board of Directors, and the responsible representative must report to the owner and the Ministry of Finance on the use of foreign loans and the repayment status of these loans, and prepare a Financial Situation Assessment Report according to the prescribed contents.

- The deadline for submitting the report is the same as the deadline for submitting the interim or annual financial reports as prescribed by the accounting system.

Ad hoc report:

- In case of any unusual circumstances that may affect the implementation of borrowing and repayment of foreign loans, the Ministry of Finance and the owner may request the Chairman of the Board of Members, Chairman of the Company, or the representative to report on the project implementation, borrowing and repayment, production and business activities, and compliance with other legal regulations.

- In case the enterprise encounters difficulties in capital utilization or difficulties in repaying foreign loans, the enterprise must report and propose solutions to resolve the issues to the owner, who will lead and coordinate with the Ministry of Finance to consider and resolve them within their jurisdiction. If the issues exceed their jurisdiction, a report must be submitted to the Prime Minister for consideration and decision-making.

Note: Enterprises owned by the state with more than 50% of charter capital are responsible for implementing the reporting system as prescribed.

View more details at Circular No. 153/2014/TT-BTC of the Ministry of Finance of Vietnam, effective from December 04, 2014.

Ty Na

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